ONLINE-ADS>> Why should low traffic sites cost less...

Bob Browning (bob_at_textor.com)
Wed, 7 May 1997 08:40:50 +0100

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Matt Carkci wrote
>Why would traffic determine the
>CPM? Shouldn't it be determined by how narrow the target audience is?

Why are we advertising - to reach buyers. What really counts is cost per
buyer.

Of course we don't know who is a buyer and who is not so we make some
sort of assumptions about the percentage of buyers in the audience and
factor this in. Maybe we don't do this consciously but that is what happens.

If you are selling widgets, then I guarantee that a site like Yahoo with
millions
of impressions per day has a low percentage of widget buyers. You don't have to
be a rocket scientist to figure that the reverse is not true, but if you
have a highly focussed widget site that you know has a high proportion of
buyers then any sort of CPM comparison with Yahoo is totally meaningles.
You could charge a CPM
*hundreds* of times higher than Yahoo and still be cheap if
expressed in cost per buyer.

Yes I said hundreds. Do the sums.

Bob
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